British house price rises pick up speed in August: mortage lender

[LONDON] British house price rises picked up speed and increased more quickly than expected in August as a shortage in the market outweighed the impact of Britain's Brexit vote and a recent tax increase, mortgage lender Nationwide said on Wednesday.

Prices rose 5.6 per cent in August compared with the same month last year and faster than July's 5.2 per cent, Nationwide said. Economists polled by Reuters had expected house prices to rise 4.8 per cent.

In monthly terms, house prices rose by 0.6 per cent, from a rise of 0.5 per cent in July.

"The pick up in price growth is somewhat at odds with signs that housing market activity has slowed in recent months," Nationwide economist Robert Gardner said. "However, the decline in demand appears to have been matched by weakness on the supply side of the market."

REUTERS